Administrative costs eat up 15 to 30 percent of all


Administrative costs eat up 15 to 30 percent of all healthcare spending in the United States. That's twice the rate of most other advanced nations. Where does this money go? Mainly into collecting money: Doctors collect from hospitals and insurers, hospitals collect from insurers, insurers collect from companies or from policy holders. One solution that has been discussed by many is to allow anyone at any age to join Medicare. Medicare's administrative costs are in the range of 3 percent. That's well below the 5 to 10 percent costs borne by large companies that self-insure. It's even further below the administrative costs of companies in the percent of premiums). And it is much lower than the administrative costs of individual insurance (40 percent). What are your thoughts?

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Operation Management: Administrative costs eat up 15 to 30 percent of all
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